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The Home Depot, through its SRS Distribution subsidiary, has closed on its acquisition of GMS, a deal previously announced in June. Including debt, the acquisition has an enterprise value of $5.5 billion.
GMS’ focus area is on specialty building products, including drywall, ceilings, steel framing and more. The deal provides Home Depot’s pro customers with more fulfillment and service options to allow them to “more quickly and seamlessly complete their projects,” the company said Thursday.
“The addition of GMS further enhances SRS’s position as a leading multi-category building materials distributor, bringing differentiated capabilities, product categories and customer relationships that are highly complementary to SRS’s business today,” Home Depot CEO Ted Decker said in a statement.
Following the closing of the deal, GMS became a direct subsidiary of SRS and an indirect subsidiary of Home Depot.
The acquisition further bolsters Home Depot’s offering for its pro customers. The retailer last year acquired SRS Distribution, which caters to professional roofing, landscaping and pool contractors, for $18.25 billion. The retailer in March also appointed Michael Rowe as executive vice president of its pro business.
“We want to serve the Pro across their entire project, and the combination of SRS and GMS will enable cross-selling synergies, strengthen our capabilities, and bring even more opportunities to grow with this important customer,” Decker said.
The push to win over pros comes as rival Lowe’s similarly looks to build out its pro offering. The North Carolina-based retailer last month announced plans to acquire Foundation Building Materials — a distributor of interior building products like ceiling systems, metal framing, drywall, insulation, commercial doors and hardware — for $8.8 billion. And in June, Lowe’s closed on its previously announced acquisition of Artisan Design Group, a provider of design, distribution and installation services for interior finishes.